Farm milk prices are falling. Agri-Mark's latest forecast is for an average price of $13.65 for 2009 with prices below $12 for a couple of months in the spring. This compares to an average price of $19.85 in 2007 and $18.62 in 2008. (Prices are the Boston statistical uniform price (SUP) for the calendar year.)
Low milk prices will be slightly mitigated by MILC payments which Agri-Mark estimates will average $1.07 in 2009. On the other hand, input costs remain higher than in 2007, although they have recently moderated slightly from their 2008 highs.
Roger Allbee, Secretary of the Vermont Agency of Agriculture, Food and Markets, convened a Dairy Status Meeting on January 16th for the purpose of sharing information about the current situation. (WCAX coverage.) Attendees heard from a variety of sources including farmers, dairy co-ops, feed and fertilizer dealers, bankers and others. I mentioned our recent letter to members and our Memorandum of Understanding (MOU) with FSA and the Vermont Agency of Agriculture regarding beginning farmers.
There were presentations about two initiatives that I had not previously heard about. I have written a blog post about each, in case you are interested:
Vermont Telecommunications Authority
Vermont Agricultural Mediation Program
UPDATE 1/28/09: The Vermont Agency of Agriculture has posted online several of the presentations made at the Dairy Status Meeting on January 16th: click here.
UPDATE 1/31/09: A follow-up meeting was held on January 29th. SVP/Chief Credit Officer Bill Heath represented Yankee, as I was unable to attend. Today's Burlington Free Press has an article about the meeting: Milk prices crash.
